Is Medicare a business without a future?

[MedicareWAA]

I'm confused. Your acquisition cost for T65 breakfast is $600?!? That's insane.

It's not insane when you are enrolling high persistency clients. Imagine that you bought a bond for $600, and it pays a 50% annual dividend ($300 renewal). Now imagine it's a six year bond. Thats an incredible ROI.

Also, high persistency T65 tend to send you more business. It's a fly wherl..

Play the long game. The strongest agencies in this business are the ones who played the long game.

 

[EckoRomeo]

Yup, sure does.
I'll bet they make about the same amount too.

Math disagrees with you.

1300 * $300 =$390,000.00 (4-5 years in business)

700 * $300 =$210,000.00 (40-50 years in business)

And my point is less about "policyholders vs clients" and more about somarco constantly trying to brag about his super-exclusive 700 client book.

 

[Medicare bro]

Yup, sure does.
I'll bet they make about the same amount too.

But the big difference is going to be that churn and burn agents like DonP are constantly chasing new business to pay the charge backs from unreliable policyholders.

While the brokers like Somarco that have clients collect reliable renewals, and have to respond to a couple of emails a week about Rx costs and write easy business from referrals.

Nothing wrong with either business model I suppose. It's a matter of preference. Personally, while I do still enjoy the thrill of the sale, I prefer clients over policyholders.

One agents gets his leads from Black Lives Matter rallies, while the other gets his leads from KKK rallies.

 

[EckoRomeo]

It's not insane when you are enrolling high persistency clients. Imagine that you bought a bond for $600, and it pays a 50% annual dividend ($300 renewal). Now imagine it's a six year bond. Thats an incredible ROI.

Also, high persistency T65 tend to send you more business. It's a fly wherl..

Play the long game. The strongest agencies in this business are the ones who played the long game.

It is insane if his acquisition is $600 per sale. My acquisition cost for T65 is less than a 1/3 of that. So using your bond analogy, that would be like paying $600 with a 50% coupon rate when you can buy a similar bond with a 350% rate.

But I think he's saying his costs are $600 per breakfast.

And I only target T65's. It's at least 75% of my business.

 

[DonP]

2 years ago Somarco said he had 400 Book of Business . He might have 450-475 now . That's in 13 yrs or so writing Medicare . As far as clients go . 90% of my client are loyal as hell . I never ever move a clients plan unless i have to .Sure 10% will be flipped by call centers and I'll save 1/2.I assure you i engage on the phone ,in person and by mail with my clients more than any agent on this board. Since aep started i've written over 100 referrals .I'm seeing many med sup rate increases of 10-20% the last 2 months . So theoretically some of these people getting sticker shock and will be shopping around if the agent doesn't shop for them. 2026 looks like its going to be another chaotic year of change for Medicare plans.

 

[LostDollar]

Math disagrees with you.

1300 * $300 =$390,000.00 (4-5 years in business)

700 * $300 =$210,000.00 (40-50 years in business)

And my point is less about "policyholders vs clients" and more about somarco constantly trying to brag about his super-exclusive 700 client book.

And perhaps somarco's point is that he has enough income from his book and business model to support his lifestyle and he neither needs nor wants the stresses that will come for him trying to focus on obtaining income levels others strive to obtain.

 

[EckoRomeo]

And perhaps somarco's point is that he has enough income from his book and business model to support his lifestyle and he neither needs nor wants the stresses that will come for him trying to focus on obtaining income levels others strive to obtain.

Perhaps but if that were the case why would he bother impugning someone with a different business model, especially when that business model is more lucrative than his?

 

[somarco]

Interesting how some folks here want to speculate on the size of my block, income, etc. as if that really matters. No one (yet) get's it right, mostly because the numbers I may have mentioned in the past are fiction.

However I do have a very high closing and persistency ratio which some try to discredit.

As if it really matters . . .

My business model is one that works for me. I am debt free and have been for years. I never felt a need to be a top producer. Awards, trips, recognition are not my driving force . . . but helping folks understand and navigate the Medicare maze is a passion.

I only write Medicare supplement plans, and only use specific carriers because it suits me and my clients. No one is ever pressured to buy. Everything is take it or leave it. I shake the dust off my feet and move on, never looking back.

My life is simple and lucrative by my standards. And I sleep well at night knowing my clients are glad they have coverage that is neither complicated nor filled with gaps that leave them frustrated.

The ignore button is a wonderful tool that allows me to filter out the bullshit tossed around by many of the agents on this forum.

 

[MedicareWAA]

It is insane if his acquisition is $600 per sale. My acquisition cost for T65 is less than a 1/3 of that. So using your bond analogy, that would be like paying $600 with a 50% coupon rate when you can buy a similar bond with a 350% rate.

It's great that your acquisition cost is low. That doesn't mean it's insane that someone else is tolerating a $600 cost per T65 sale when the immediate revenue is at least $600. He's cash flow positive from the start.

Not to mention that the MA T65 comp rules mean you're paid the full 2x comp regardless of the time of the year. I'll write $500 December T65s all day long if given the opportunity. I'll make $600 on Dec 1 and renewals start Jan 1.

 

[EckoRomeo]

Interesting how some folks here want to speculate on the size of my block, income, etc. as if that really matters. No one (yet) get's it right, mostly because the numbers I may have mentioned in the past are fiction.

Interesting that you admit to being a liar.

However I do have a very high closing and persistency ratio which some try to discredit.

So, an admitted liar is bothered by people doubting him. There may be something clinically wrong with him.

Also, no one cares about your close rate. You're a low volume producer. You don't spend close rate. And when you do low volume your persistentcy better be phenomenal.

My business model is one that works for me. I am debt free and have been for years. I never felt a need to be a top producer. Awards, trips, recognition are not my driving force . . . but helping folks understand and navigate the Medicare maze is a passion.

You want an award or something? You think you're a martyr???

I only write Medicare supplement plans, and only use specific carriers because it suits me and my clients. No one is ever pressured to buy. Everything is take it or leave it. I shake the dust off my feet and move on, never looking back.

My life is simple and lucrative by my standards. And I sleep well at night knowing my clients are glad they have coverage that is neither complicated nor filled with gaps that leave them frustrated.

You think you're the only one who does this??? lol… this issue some real megalomaniac type stuff right here…

The ignore button is a wonderful tool that allows me to filter out the bullshit tossed around by many of the agents on this forum.

So you've bragged about being so shame of your book that you've lied about it and now you're bragging about being such a snowflake you block anyone who has an opinion that hurts your feelings. And you voted for Trump?!?

lol….